For Tuesday February 18, 2014, We Recommend Against Equity Investing

Sell US equity positions and hold cash. Price inflation hedges should be held or accumulated for the long term as price inflation is starting to accelerate. Avoid all bonds, including the new MyRA bonds announced recently.

Technical Comments:

The S&P 500 advanced 0.48% on Friday with volume below Thursday and below the 30-day moving average, making Friday another light-volume up-day. In the past week 4 of the 5 trading days were below average volume, so the growing volume trend seems to have at least paused if not stopped altogether. The advances in the market on light volume are not bullish indicators. If the S&P 500 should decline about 50 points on Tuesday (-3%) our stop-loss algorithm could trigger and change our market forecast to an uncertain trend. US markets are closed Monday for the President’s Day holiday.

Subjective Comments:

We are huge fans of economics, commerce and free enterprise. As entrepreneurs we respect commercial endeavors and the sovereignty of the consumer to choose where to spend their money. Blogging with our current business model continues to be an entrepreneurial experiment with low monetary costs. The time consumption in producing the blog is not low and there are more lucrative opportunities on the horizon. We have begun the process of winding down this blog, but we think it is irresponsible to suddenly stop. We know we have a base of readers who check this blog on a regular basis, and there are many subscribers who receive daily posts via email. For all of you who have been with us on this journey, we have too much gratitude and respect to simply stop.

We will continue to post our blog on a daily basis through March and into April. At some point in April we anticipate suspending publication of this blog. When we have our wind-down plan finalized we will share the specific date and provide additional details. It is our sincere hope giving our readers this advance notice will be seen as the gesture of respect it is intended to be.

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